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April 12, 2024

Enhancing protection: IC doubles compulsory motor vehicle liability benefit claim limits

The Insurance Commission (IC) has raised benefit claim limits for third-party vehicle liability insurance under the compulsory motor vehicle liability insurance (CMVLI) without increasing premiums.

Through Insurance Memorandum Circular 2024-01, the IC has doubled the limit for third-party liability claims under CMVLI to P200,000 from P100,000.

Similarly, death indemnity, burial and funeral expense indemnity, and no-fault indemnity have been increased to P200,000, P30,000, and P30,000, respectively.

While the new circular does not mandate an increase in premiums for CMVLI, any adjustments will be subject to further study.

The CMVLI policy, required for motor vehicle registration, aims to ensure that vehicle owners or operators can indemnify third parties or passengers for accidents resulting in death or bodily injury.